Salary-basis & white-collar exempt checklist

Static educational checklist — not a calculator. No salary inputs, no exemption-eligibility engine, no live shortfall math. Spot common salary-basis and white-collar exempt red flags under FLSA Part 541 (executive, administrative, professional, and related tests). Distinct from fluctuating-workweek (§ 778.114 non-exempt salary), rounding / auto-deduction, donning/doffing, compensatory-time, sleep-time, spread-of-hours, training-time, continuous-workday, on-call/waiting, travel-time, meal/rest, tip-credit, Part 516 recordkeeping, child-labor, final-paycheck, lactation/PUMP, and OT pay-stub pages.

Federal baseline

To claim the Part 541 white-collar exemptions, an employee generally must (1) be paid on a salary basis (or qualifying fee basis) at or above the applicable salary-level floor, and (2) primarily perform exempt executive, administrative, or professional duties. “Salary basis” means a predetermined amount not subject to reduction because of variations in the quality or quantity of work — subject to narrow, enumerated deduction rules in § 541.602 / § 541.603. Job titles alone do not create an exemption. This page does not compute salary floors, reclassify workers, or estimate unpaid overtime.

Checklist — salary-basis / white-collar red flags

  1. Partial-day docking of “exempt” salary. Flag employers that reduce an exempt employee’s predetermined salary for absences of less than a full day (doctor visits, late arrivals, early departures) — classic salary-basis failure under § 541.602, distinct from full-day personal absences when no PTO remains.
  2. “Actual practice” of improper deductions that destroys the exemption. Flag patterns of illegal docks (even if the written policy looks clean) — frequency, managers’ clear policy to deduct, and failure to reimburse after complaints can show the employee was not truly paid on a salary basis (§ 541.603).
  3. Window-of-correction used as a standing license to keep docking. Flag employers that treat the § 541.603(c) “window of correction” as permission to keep making improper deductions so long as they occasionally refund — the safe-harbor requires a clearly communicated prohibition, a complaint mechanism, and good-faith reimbursement, not a revolving dock-and-refund habit.
  4. Furlough / budget-cut weeks that still treat the worker as exempt. Flag unpaid full-week furloughs paired with expectations that “exempt” staff answer email or finish deliverables that week — salary basis generally requires the full weekly salary when any work is performed in the workweek (subject to narrow public-sector rules).
  5. Hourly-feeling “exempt” pay with timesheet shaving. Flag so-called exempt roles paid a weekly amount that still fluctuates with recorded hours, requires clocking every minute, or is cut whenever hours drop below a target — that pattern looks like non-exempt wages, not a predetermined salary.
  6. Fee-basis labels that are really piece or day rates. Flag “fee basis” claims for professionals when pay is a day rate, per-shift flat, or production piece that does not meet § 541.605’s unique-project fee concept — mislabeled fee pay often fails both the fee test and the salary-basis test.
  7. Highly compensated shortcut without the short duties test. Flag “HCE” classifications that skip even the minimal duties showing (office/non-manual work + customarily one exempt duty) or that inflate total annual compensation with discretionary bonuses counted incorrectly under § 541.601.
  8. Paper titles / org-chart exemptions without primary duties. Flag “Manager,” “Administrator,” or “Coordinator” titles where the worker’s primary duty is production, routine clerical, or non-discretionary tasks — Part 541 is a duties test, not a business-card test (see §§ 541.100 / .200 / .300).
  9. Salary-level floor ignored or stale. Flag classifications that rely on an outdated minimum salary threshold, prorate the weekly floor incorrectly for part-time exempt claims, or treat commissions / board / lodging as salary without meeting the regulation’s counting rules.
  10. State / local overlays ignored. Flag federal-only reliance where a state bans certain exempt deductions, sets a higher salary floor, narrows duties tests, or requires OT for roles federal law might treat as exempt. Always check the stricter overlay.

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Educational checklist only — not legal advice and not a salary-basis / white-collar exemption calculator. Last updated 2026-09-08. Home · Rounding · Fluctuating workweek · Cheat sheet · StatutePay